Not so long ago statistics showed low adoption levels on Personal Finance Management (PFM) systems. Indeed, the 10-12% adoption rate can hardly
be a strong motivation for banks to invest in PFM development. But the financial industry is changing, shaped by customers, who are looking for some financial coaching instead of financial education.
In this text, we will provide market insights and facts in order to prove that PFM is gaining momentum, yet, in a slightly new direction, when compared to pioneer finance management systems.
Let’s begin by embracing the real number of users, who are potentially interested in PFMs. The global PFM software market reached $795 million in 2016, according to
Allied Market Research. What’s more: it is going to skyrocket to $1,213 million in the upcoming years (by 2023).
PFM adoption in reality
The official rates of PFM consider the use of personal finance management systems integrated into the banking software. They don’t include the use of stand-alone apps, like
Mint (budget tracker and planner) or
Acorns – (savings automation and investment tool)
with 20 and 30-40 million users in the US, correspondingly. These people can also be counted as PFM users (or at least PFM-features users), therefore the real adoption rate is much higher.
There are some other studies to support this idea. According to
Fintech Singapore 2019 research, the global consumer adoption of fintech services is rising in the last couple of…